The pundits are just not getting it. It’s the inflation, stupid.
The Bureau of Labor and Statistics (BLS) released the December jobs report today [DATA HERE] showing 199,000 job gains in December, approximately half of what was expected. Most financial pundits are perplexed as the employment rate drops to 3.9%, because many people have dropped out of the labor force. The labor participation rate remains unchanged at 61.9%.
Keep in mind, the November jobs report showed a decline in retail jobs of 29,000, and this report shows that despite November & December being the largest shopping months for holidays, the retail sector jobs were nonexistent.
The issue is what we have discussed here for months, inflation.
The job quits and JOLT turnover reports from last week showed massive numbers of employees quitting their jobs. In part this is pressure from the vaccine mandate (more on that later). However, in the majority what we are seeing is employment decisions based on inflation hitting the labor market.
Additionally, the current BLS report does not have the Omicron “winter of death” employment impact within it. That impact will come in the January report, and it will not be good. But let’s get down to reconciling December jobs data with reality on the ground.
Inflation is chewing up income amid the workforce. This is not debatable, and this is reflected in every opinion poll and economic statistic that has surfaced for the past six months. The BLS report somewhat surprised people in the 0.6% wage gains, and average wage increases are now 4.7% year over year. That should be a good thing. However, inflation at 20 to 50+% on energy, fuel, gasoline and food means a 4.7% growth in wages is a pittance.
“This is no small thing, to restore a republic after it has fallen into corruption. I have studied history for years and I cannot recall it ever happening. It may be that our task is impossible. Yet, if we do not try then how will we know it can’t be done? And if we do not try, it most certainly won’t be done. The Founders’ Republic, and the larger war for western civilization, will be lost.”
Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.